2026 State Tax Withholding Guide
Issue/Symptom/Question
2026 PENTA State Tax Withholding Guide
Applies To
Penta for Windows
Payroll
Resolution/Fix/Answer
- 1 Introduction
- 2 What’s New
- 3 State Table Columns
- 4 Exceptions
- 5 State Withholding Status Conversion Tables
- 6 Alabama
- 7 Arizona
- 8 Colorado
- 9 Connecticut
- 10 Delaware
- 11 District of Columbia
- 12 Georgia
- 13 Idaho
- 14 Illinois
- 15 Indiana
- 16 Iowa
- 17 Louisiana
- 18 Maine
- 19 Maryland
- 20 Massachusetts
- 21 Mississippi
- 22 Missouri
- 23 New Jersey
- 24 Oklahoma
- 25 Puerto Rico
- 26 West Virginia
Introduction
Use this State Tax Withholding Guide when you set up state withholding information on the Withholding tab of the Employee Payroll Information window. Because PENTA uses generic withholding codes, you can use the state tables below to translate withholding status from the individual state certificates to PENTA’s withholding codes.
What’s New
Additional withholding options for Maryland.
State Table Columns
Withholding status from state certificate.
All valid withholding status codes specific to the state are listed in this column.
PENTA’s Withholding Status field
This column lists valid PENTA withholding status codes that are relative to each state.
Use this column to cross-reference the “Withholding status from state certificate” codes. When you set up employee records, enter this column’s state withholding data on the Withholding tab of the Employee Payroll Information window.
PENTA’s Number of Dependents field
This column lists valid entries you can make in PENTA and/or describes the rules and limitations in this area, specific to the state.
Use this column to determine the value to enter in the Number of Dependents field on the Withholding tab of the Employee Payroll Information window for the chosen Withholding Status.
Exceptions
Some states, such as Maryland, do not use withholding statuses. For these states, the tables contain the withholding information customized for the state’s specific guidelines.
State Withholding Status Conversion Tables
Alabama
Withholding Status From State Certificate | PENTA's Withholding Status Field | PENTA's Number of Dependents Field |
|---|---|---|
Single | S | PENTA calculates appropriate allowances for entries greater than zero. |
Married Filing Jointly | M | |
Married Filing Separately | X | |
Head of Family | H |
Arizona
Effective January 1, 2023 the withholding rate will be the default 2.0% for all 8 Arizona State Codes. We are changing the Names for the 7 “special” Arizona State Codes to be 'Arizona - Obsolete 2023'. All Arizona employees should submit a new Form A-4. Customers should use the Fixed Withholding Pct for employees who submit a new Form A-4 and choose a withholding percentage other than 2.0%.
Note: Although recommended, existing employees using “special” Arizona State Codes do not need to be converted to State Code AZ.
Colorado
Withholding Status is only used if no amount is entered in the number of dependents field. Number of dependents field equal to zero indicates no 2026 withholding certificate has been submitted.
Number of Dependents to enter in PENTA = Annual Withholding Allowance ÷ $500.
Example: If amount employee entered into box 2 of form DR0004 is $10,500 then the value to enter in the Number of Dependents field = $10,500 ÷ $500 = 21
Connecticut
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
A | X | Connecticut does not use exemptions or dependents in its tax calculation. Since it is a required field in PENTA, enter a meaningful value, such as one of the following:
|
B | H | |
C | M | |
D | N | |
E | Enter a meaningful value* | |
F | S |
*In the Subject to State W/H field, type N. PENTA then meets type E requirements as follows:
Records SIT earnings.
Does not withhold any taxes.
Ignores the Withholding Status and Number of Dependents.
Delaware
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | PENTA calculates appropriate allowances for entries greater than zero. |
Married filing jointly | M | |
Married filing separately | B |
District of Columbia
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | PENTA calculates appropriate exemptions for entries greater than zero. |
Married persons filing jointly | B | |
Married persons filing separate returns or combined separate returns | M |
Georgia
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | PENTA takes the Georgia standard deduction per the withholding status for any value (including zero) that you enter. PENTA calculates appropriate allowances for entries greater than zero. |
Hd/hsld | H | |
Married filing separate | N | |
Married filing joint, one spouse working | M | |
Married filing joint, both spouses working | N |
Idaho
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | PENTA multiplies the Idaho withholding allowance amount by the value in the Number of Dependents field. E.g., entering 4 in this field for a single employee tells PENTA the employee is eligible for 4 allowances, such as 2 for self plus 2 for 2 children qualifying for the Idaho child tax credit. |
Married | M | |
Head of Household | H | |
|
|
Illinois
Withholding status is not used.
To calculate the Number of Dependents, use the following procedure:
Multiply the Number of Allowances on Line 1 of Form IL-W-4 by 1.
Multiply the Number of Allowances on Line 2 of Form IL-W-4 by 0.351.
Enter the sum of the results of steps 1 and 2 in the Number of Dependents field on the Employee Information – Page 3.
For example, if line 1=2 and line 2=1, enter (2*1) + (1*0.351) = 2.351.
Indiana
Withholding status from state certificate | PENTA’s Number of Dependents Field |
Personal Exemptions | Number of Dependents = |
Dependents | |
Adopted Child Dependents |
Example:
Personal Exemptions = 5; Dependents = 3; Adopted Child Dependent = 1
((5 * 1000) + (3 * 1500) + (1* 3000)) / 1000
(5000 + 4500+ 3000) / 1000
12500 / 1000
12.5 entered into PENTA Number of Dependents field.
Iowa
For employees submitting a 2025 (or later) IA W-4 form, Number of Dependents to enter in PENTA = the Total Allowances Amount on Line 6 of the IA W-4 form divided by $40.
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | PENTA takes the Iowa standard deduction per the withholding status for any value (including zero) that you enter. PENTA calculates appropriate allowances for entries greater than zero. |
Head of Household | H | |
Married filing Jointly with Spouse Having No Earned Income | M | |
Married Filing Separately or Married Filing Jointly with Spouse Having Earned Income | B |
Louisiana
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | Entering 1 or more Dependent(s) gets the Standard Deduction. |
Head of Household | H | Entering 1 or more Dependent(s) gets the Standard Deduction. |
Married | M | Entering 1 in the Dependent field gets the Standard Deduction. Entering more than 1 gets the Standard Deduction for Married Filing Jointly. |
No Standard Deduction | S, H or M | Zero |
Maine
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | PENTA calculates appropriate exemptions for entries greater than zero. |
Married with one income | M | |
Married but withholding at higher single rate | B * |
* Effective 1/1/2007 Maine eliminated the ‘Married with two incomes’ withholding rate but allows married employees to elect withholding at the single rate. In PENTA, the B status for ‘Married but withholding at the higher single rate’ withholds at the same rate as S for Maine.
Maryland
Maryland combines State and Local Income Taxes. Refer to state publications for details.
In PENTA, select the appropriate state code for payroll processing based on the associated local income tax rate. PENTA state codes for Maryland include MD1, MD2, MD3, etc. The associated rates (noted in the state code description) are subject to change.
MD is not a valid state code for payroll processing.
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Head of Household | H | Not applicable. |
Married filing joint | M | |
Single | S | |
Married filing separately | S |
Massachusetts
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Hd/hsld | H | Sum of (1 exemption for self) + (number of dependents) |
Married, claiming self and spouse | M | Sum of (1 exemptions for self) + (4 exemptions for spouse) + (number of additional dependents) |
Not married, claiming self | S | Sum of (1 exemption for self) + (number of dependents) |
No exemptions or dependent credits claimed | S or M or H | Zero |
Mississippi
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field | |
Single | S | Calculate Number of Dependents = | |
Married, spouse not employed | M | ||
Married, spouse employed | B | ||
Head of family | H | ||
Missouri
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field | ||
Single | S | PENTA calculates appropriate exemptions for entries greater than zero. | ||
Married and spouse works | M | |||
Married and spouse does not work | B | |||
Head of household | H | |||
New Jersey
Rate Table from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
A | S | Enter the number of allowances you are claiming. Entering a number greater than zero in this field will decrease the amount of withholding and could result in under withholding for the employee. |
B | All other available Withholding Status values | |
C | C | |
D | D | |
E | E |
Oklahoma
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single | S | Use the number of exemptions allowed for federal withholding purposes to calculate state withholding. |
Married joint | M | |
Married persons with dual incomes | B | |
Married, filing separate | X | |
Head of household | H |
Puerto Rico
Puerto Rico Form 499 R-4.1 (Withholding Exemption Certificate) provides the basis of the formula for determining the number of dependents to enter into PENTA. The formula uses the following values from the form completed by each employee:
B = Line B Number of Dependents
C4 = Line C4 Allowances that you want to claim
A3 = Line A3 Additional veterans' personal exemption
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Single Person or Married Person not living with spouse and claiming all of the personal exemption | S | B + (C4 x 500/2500) + A3
If the employee claims the veteran's exemption, A3 = 1500/2500, otherwise A3 = 0 |
Married Person filing jointly claiming all of the personal exemption | M | B + (C4 x 500/2500) + A3
If the employee claims the veteran's exemption, A3 = 500/2500, otherwise A3 = 0 |
Head of Household | H | B + (C4 x 500/2500) + A3
If the employee claims the veteran's exemption, A3 = 1500/2500, otherwise A3 = 0 |
Married Person filing jointly claiming half the personal exemption | X | B + (C4 x 500/1250) + A3
If the employee claims the veteran's exemption, A3 = 1500/1250, otherwise A3 = 0 |
Married Person living with spouse, filing separately, claiming all of the personal exemption | B | B + (C4 x 500/1250) + A3
If the employee claims the veteran's exemption, A3 = 1500/1250, otherwise A3 = 0 |
Person claiming none of the personal exemption | N * | 0 |
* Status of N requires special handling. Currently not active in PENTA for PR.
West Virginia
Withholding status from state certificate | PENTA’s Withholding Status Field | PENTA’s Number of Dependents Field |
Withholding at the higher rate | B | PENTA calculates appropriate exemptions for entries greater than zero. |
Withholding at the lower rate | All non-B values |